| November 13, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
FIA has announced six new inductees to its 2025 Hall of Fame, to be honored at the 50th International Futures Industry Conference in Boca Raton, Florida, from March 9-12, 2025. The honorees include Mark Bagan, former CEO of MGEX and MIAX executive (posthumous); Laura Cha, former chair of HKEX; Terry Duffy, chairman and CEO of CME Group; Jeff Sprecher, founder and CEO of Intercontinental Exchange; U.S. Senator Debbie Stabenow, chair of the Senate Agriculture Committee; and Don Wilson, founder and CEO of DRW. The FIA Hall of Fame, established in 2005, celebrates individuals from both private and public sectors who have significantly impacted listed and cleared derivatives markets. Congratulations to all these very deserving members and welcome.
Someone should tie an anchor to Don Wilson's ankle so he does not float away. Being called the smartest man in trading and named to the FIA Hall of Fame in the same week (and Bitcoin hitting all-time highs) is not a bad week at all.
I have been remiss in reporting the passing on October 30, 2024 of former CFTC Commissioner William Price (Bill) Albrecht, who was a Democratic commissioner appointed by President Reagan in 1988 and served until 1993. He was appointed acting chairman on January 22, 1993 and quit suddenly on August 20, 1993, to be replaced by Sheila Bair
He would be memorable to Chicago traders as the acting CFTC chairman who led the CFTC during a unanimous ruling that found that 22 members of the Chicago Board of Trade were innocent of pre-arranged trading related to charges brought in 1986 related to a type of trade known as a "ginzy." Though this case was initiated in 1986, after the FBI Sting, the CFTC brought charges against the traders. This brought howls of politics from some of the accused as the CFTC was upstaged by the FBI, The Chicago Tribune reported at the time.
An attorney on the other side of the CFTC in the ginzy case was William Nissen, the focus of a John Lothian Profiles video we shot months ago. The whole interview is about 40 minutes long, so we broke it up into four pieces and have published the first piece in today's JLN. In part one, Nissan talks about the ginzy case towards the end of the video. You can see part one HERE.
The case followed an earlier enforcement action in which traders were fined for pre-arranged trading. In this subsequent case, in which Nissen was involved, a broker would consistently place orders for a client and then immediately place opposite orders for the same quantity, effectively creating a "half-tick trade." About 20 local traders regularly made markets for this broker. Unlike the previous case, there was no evidence or allegation of pre-arrangement; the pattern had simply developed over time. The CFTC brought action against the broker and locals, arguing that the trade structure was inherently noncompetitive, even without pre-arrangement. The Chicago Board of Trade had examined the practice and decided not to take action. During the CFTC proceedings, the Board of Trade's general counsel testified on behalf of the defendants. Ultimately, the administrative law judge ruled in favor of the locals and the broker, concluding that without prior arrangement, the trades could not be deemed noncompetitive, despite the resulting half-tick effect.
India's National Stock Exchange (NSE) is ending weekly options contracts on the Nifty Bank Index, which helped make India the world's largest options market by trading volume, Bloomberg reported. This move is part of regulatory efforts to curb excessive growth in equity derivatives, which surged over 40 times in five years, with peak trading reaching $6 trillion in notional value. The Securities and Exchange Board of India introduced restrictions limiting exchanges to one weekly option each, aiming to shift household investments from speculative trading back to the economy. NSE's Nifty 50 weeklies and BSE's Sensex weeklies will continue, but Nifty Bank weeklies, once a popular hedging tool, will end, likely reducing derivatives trading volume and impacting exchanges and brokers. Traders are expected to redirect activity to monthly contracts and single-stock options, although some volume may be lost.
The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has issued an alert to financial institutions regarding fraud schemes involving deepfake media created with generative AI tools. The alert provides typologies, red flag indicators, and reminds institutions of their reporting obligations under the Bank Secrecy Act. FinCEN Director Andrea Gacki emphasized the need for vigilance, as bad actors increasingly use deepfakes for fraud, particularly with fake identity documents to bypass verification processes. This alert is part of the Treasury's broader initiative to inform institutions about the risks and benefits of AI technology in combating financial crime.
I guess I need to show WatersTechnnology some love today. For two days only, on November 13-14, WatersTechnology will unlock premium articles for non-subscribers, allowing access to exclusive coverage and insights on capital markets. During this period, readers can explore in-depth analysis, recent developments, and interviews, including articles like FactSet unveils Data-as-a-Service offering, DORA stalls over identifier dispute, Bloomberg ups focus on quants, intraday, Private markets' data quality problem, and Why banks are building more than buying. Save the dates to take advantage of this opportunity.
Registration is now open for the George Mason Law Review's 28th Annual Antitrust Symposium, titled Antitrust Cornucopia: AI, Ad Tech, Content Moderation, & What's Next?, on February 21, 2025, at the Fairmont Washington, DC in Georgetown. This year's symposium will examine key issues at the intersection of antitrust and technology, including the Justice Department's antitrust case against Google in ad tech, AI innovation and copyright law, content moderation challenges under Section 230 and the EU's Digital Services Act, and priorities for antitrust agencies under the next administration. FTC Commissioner Melissa Holyoak will deliver the closing address.
There was a typo in my rant about Purdue football. The Purdue-IU game is on November 30, not November 60. Not sure how that typo happened or was not caught. One of my favorite memories from my college years was having a winning football team. Of Purdue's five winning seasons in the last 25 during the time I was in college, four of them came when I was at Purdue. One of the highlights every year was playing Notre Dame, then led by Gerry Faust, who just died at the age of 89, The New York Times reports in a story titled "Gerry Faust, Coach Who Lived a Dream at Notre Dame, Dies at 89." I spent four and a half years at Purdue, earning two bachelor degrees. I had the pleasure of staying one extra fall and seeing Purdue beat Notre Dame and Faust one last time in the fall of 1983.
Here are the headlines from in front of FOW's paywall from some recent stories: India may be 'biggest winner' as Trump targets China - Nomura, Britannia hires Welsh to run metals amid commodities drive, ANALYSIS: Euronext chief Boujnah eyes opportunities in European derivatives and ANALYSIS: European post-trade efforts would help retail traders - Cboe.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Have the Odds for "New" Exchanges to be Successful Improved? from Joe's Garage.
- An Options Trader's Guide to Election Day Fallout from Schaeffer's Investment Research.
- Bitcoin ETFs Are a Hot Trump Trade. How to Pick the Best Ones. from Barron's. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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| Sponsored Content |
"FIA Forum - Tokyo 2024" held at JPX
Together with FIA and FIA Japan, OSE successfully hosted the FIA Tokyo Forum on October 10, 2024, at the Tokyo Stock Exchange. The event welcomed over 220 attendees representing more than 100 companies.
The program opened with remarks from Mr. Nakaso, Chairman of FinCity.Tokyo, and Mr. Yokoyama, President and CEO of OSE. These introductions were followed by two engaging panel discussions and an insightful address by Mr. Ito, Commissioner of the Financial Services Agency.
During the panel discussions, industry leaders from global exchanges and brokerages shared their perspectives on the Japanese market and their development plans. They also explored practical applications of OSE's recent innovations in the interest rates market, including the newly launched 3-Month TONA Futures.
Mr. Kazuhisa Kakizaki, Executive Officer of OSE/TOCOM, joined a panel to discuss JPX's product advancements. He highlighted developments such as the 3-Month TONA Futures, TOCOM Electricity Futures, and the revival of the Single Stock Options market.
For further details , please refer to the following link: https://www.fiajapan.org/post/fia-forum-tokyo-2024-co-organized-with-fia-japan.
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The Legal Mind Behind Futures Industry Landmarks
JohnLothianNews.com
Bill Nissen, an attorney, started in the world of futures and derivatives law helping Heinold Commodities collect customer trading debits back at a time when risk management in the futures industry was less developed than today. That early work for one of the largest retail futures brokers spawned a career in futures and derivatives law that has seen him participate in some of the industry biggest cases. Nissen talked to JLN for this John Lothian Profiles interview about his career and the cases that made it.
Watch the video »
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Equity Index Futures: Futures Discovery EP 14
JohnLothianNews.com
Today, we're diving into the intricate world of equity index futures, a topic that can shape the flow of your futures trading journey. Equity index futures are financial contracts that allow traders to speculate on the future value of an underlying equity index, such as the S&P 500, NASDAQ 100, or Dow Jones Industrial Average. These contracts are not just numbers; they represent the pulse of the market and can significantly impact your trading strategies.
Watch the video »
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City panel OKs $98 million LaSalle Street TIF subsidy
Danny Ecker - Crain's Chicago Business
Chicago taxpayers are a step closer to giving developers $98 million to help revive one of LaSalle Street's biggest office buildings with 386 apartments, a grocer and a parking garage after a city panel overseeing the subsidy signed off on the plan. The Chicago Community Development Commission today approved the tax-increment financing money for a $241 million redevelopment of the landmark tower at 135 S. LaSalle St. The proposal for the former Bank of America office building from a joint venture of Chicago-based developers Riverside Investment & Development and DL3 Realty and New York-based AmTrust RE is the fifth and largest project to emerge from the LaSalle Street Reimagined program launched in 2022 by former Mayor Lori Lightfoot. The approval from the mayoral-appointed committee clears the city to negotiate a redevelopment agreement with the developers that would govern the TIF grant. The developers still need approval from other city panels, such as the Chicago Plan Commission and Commission on Chicago Landmarks, before going to the City Council for a final review. If they get those green lights and line up construction financing for the project, the developers estimate they could begin work in July and complete the redevelopment by April 2027.
/jlne.ws/3O7nHF0
****** It will take a lot of private money to make that $98 million city money work, and if it does not come through, this TIF might be a Taxpayer Infrastructure Fantasy.~JJL
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Ken Griffin sells two floors on Walton Street for $19 million
Dennis Rodkin - Crain's Chicago Business
Ken Griffin, the billionaire head of the Citadel financial empire who moved to Florida last year, sold two of his unfinished floors, one of which has a rooftop pool, today for a combined $19 million. Griffin sold the 37th floor at No. 9 Walton for $9 million and the 38th and its pool level for $10 million. Although they went on the market and off at separate times, it appears likely that both units went to the same buyer, not only because the sales closed on the same day but because the buyers in both deals were represented by the same agent, Katherine Malkin of Compass.
/jlne.ws/4fIY1KN
**** Ken Griffin still has the two floors below. ~JJL
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Merger Trading Will Get Easier; Also some bad FTX loans, a late greenwashing case and Fed chair precedents.
Matt Levine - Bloomberg
Arbaggedon
I guess there are two ways of thinking about merger arbitrage as a hedge fund strategy. One is: "Merger arbitrage is a bet on which mergers will close." If you are a merger arbitrageur, your job is to look at merger deals that are announced, figure out how likely they are to actually close, and then bet money on the ones that the market underprices. Company X is trading at $35 per share, and then it announces that it has signed a merger agreement to be bought by Company Y for $50 per share. The stock trades up to $46. You look at the deal and think "this deal is ironclad, there are no regulatory problems, it will definitely close in six months, and I can make 8.7% in six months by buying today at $46 and selling at closing at $50." You are playing a game of skill against other traders, trying to buy the deals that will close and avoid (or short) the deals that won't. In reality nothing is certain, so you will try to pick the deals where you think the probability is good and the reward (the spread between the deal price and the current stock price) is worth the risk.
/jlne.ws/3YO1BfS
***** Matt Levine uses the word "Arbaggedon," which I made the word of the day the other day (though I spelled it "Arbageddon," which seems to be the common spelling of this made up word). I created a MarketsWiki page for the word, which you can see if you click on the link.
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Tuesday's Top Three
Our top clicked item on Tuesday was the registration page for the FIA Futures & Options Expo taking place in Chicago from November 18-10 at the Sheraton Grand Chicago Riverwalk. Second was the registration page for GFLC Reimagined, the Global Financial Leadership Conference taking place November 18-19 in Naples, FL. Third was the registration page for the World Federation of Exchanges' Annual Meeting November 19-21 in Kuala Lumpur, Malaysia.
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| Lead Stories | FIA announces 2025 Hall of Fame inductees
FIA
FIA has announced the names of six new members of the FIA Hall of Fame. The new members will be honored at an awards ceremony during FIA's 50th International Futures Industry Conference in Boca Raton, Florida, on 9-12 March 2025. "We established the FIA Hall of Fame to recognize the people who have made exceptional contributions to the growth and development of the listed and cleared derivatives industry," said FIA President and CEO Walt Lukken. "The 2025 group of inductees have provided exceptional leadership, wisdom and vision to propel our industry forward. We are honored to present them with this recognition." The following leaders will join the 2025 Hall of Fame: Mark Bagan, former MGEX CEO and MIAX executive (posthumous); Laura Cha, former Chair of HKEX; Terry Duffy, Chairman and CEO of CME Group; Jeff Sprecher, Founder, Chair, and CEO of Intercontinental Exchange; Debbie Stabenow, US Senator (MI) and Chair, Senate Agriculture Committee; Don Wilson, Founder and CEO, DRW
/jlne.ws/3ULVwiI
Eurex Delays EU Bond Futures in Blow to Bloc; Exchange says it needs certainty over new debt beyond 2026; ICE has just announced plans to launch futures next month
James Hirai and Greg Ritchie - Bloomberg
Europe's largest bond futures exchange has postponed the introduction of a futures contract tied to European Union debt, a blow to the bloc's aims to boost trading in its bonds. Eurex Clearing AG, which originally planned a launch this year, told Bloomberg that a "key" pre-requisite for such a product is that the EU bond program becomes sustainable and of long-term nature beyond 2026. It didn't specify when a decision will be made, saying it needs more time to make assessments.
/jlne.ws/3ArWB8E
A Drug Gang Stole 3 Tons of Gold in a Scam So Perfect It's Still Going; Miners are plundering one of the biggest mother lodes of gold in Latin America, led by gunmen who seized tunnels from a Chinese mining giant
Juan Forero - The Wall Street Journal
Some 700 yards deep in Colombia's richest gold mine, private security guards crouch behind sandbags, trapped in a failing battle with a drug-trafficking gang that has commandeered 30 miles of tunnels worth hundreds of millions of dollars. The air below ground is hot, humid, sometimes toxic, and the work is dangerous-defending claustrophobic passageways against tossed explosives and gunfire from AK-47 assault rifles. Two guards were killed and several others wounded last year. On the other side, braving their own dangers, are an estimated 2,000 illegal miners.
/jlne.ws/40ESMHL
Contract That Made India Top Options Market Has Last Trading Day
Savio Shetty - Bloomberg
Wednesday will mark the end of the contract that turned India into the world's largest options market. The National Stock Exchange of India Ltd. is discontinuing weekly contracts on the Nifty Bank Index of major lenders - derivatives that represented about one-third of total index options volume - as the nation's regulator is seeking to rein in an industry that grew more than 40 times over the past five years. At the peak in February, overall options trading reached $6 trillion in notional value - larger than the size of the Indian economy.
/jlne.ws/3Z3RnZZ
VC Firms and Tech Startups Face Growing Pressure for Liquidity. Enter Private Equity; Measured realism feels alien in the go-big-or-go-home world of tech, but it could have positive outcomes
Steven Rosenbush - The Wall Street Journal
The alchemy of the venture capital process, in which investments are catalyzed over a number of years into a successful IPO or a big M&A deal, is under pressure. Investors are demanding to extract returns from VC firms and startups even though the IPO market is still in a state of recovery, reflecting lingering economic anxieties and other factors. IPOs in 2024 have outpaced last year, but activity remains below normal levels, the law firm Ropes & Gray said in an October report.
/jlne.ws/3CoFSn8
FinCEN Issues Alert on Fraud Schemes Involving Deepfake Media Targeting Financial Institutions
FinCEN
Today, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued an alert to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence tools. The alert explains typologies associated with these schemes, provides red flag indicators to assist with identifying and reporting related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act. As highlighted in the alert, FinCEN has observed an increase in suspicious activity reporting by financial institutions describing the suspected use of deepfake media, particularly the use of fraudulent identity documents to circumvent identity verification and authentication methods.
/jlne.ws/40LDwJ9
FCA backtracks on plan to 'name and shame' probed companies; Regulator's proposals provoked backlash from politicians and City of London
Martin Arnold - Financial Times
Britain's financial regulator has said it will "fundamentally reshape" its plan to "name and shame" more of the companies it investigates after the proposals provoked a big backlash in the City of London. Nikhil Rathi, chief executive of the Financial Conduct Authority, said it would present revised proposals "in the next week or so" before making a final decision early next year. The FCA announced in February it planned to name more companies under investigation and at a much earlier stage in an effort to increase the deterrent effect of its probes.
/jlne.ws/3CBPNFR
HK Brokers Brace for First Typhoon Trading Day as Storm Nears
Foster Wong - Bloomberg
For the first time on Thursday, Hong Kong's stock exchange will keep its markets open through severe weather. The Hong Kong Observatory said it will issue a so-called Typhoon Signal 8, the third highest, at 11:10 p.m. local time Wednesday as tropical storm Toraji is edging closer to the Pearl River Estuary and local winds will strengthen. The signal will remain in force at least until 10 a.m. Thursday, it added. "All of HKEX's markets, including the after-hours trading session, will remain fully operational," Hong Kong Exchanges & Clearing Ltd. said in a statement.
/jlne.ws/40FpwRa
Coinbase launches 'Coin50' index as crypto equivalent to S&P 500 and a balance to Bitcoin
Catherine McGrath - Fortune
The largest crypto exchange in the U.S. is launching its own version of the S&P 500 - sort of. Coinbase is launching the Coinbase 50 Index, or Coin50, which provides investors with a broad and accessible tool to better understand how the market is performing as a whole. As the crypto industry matures and institutional investors enter the space, Coinbase is seeking to evolve alongside it by offering a reliable measurement that accurately portrays the growing size and diversity of the market. Head of institutional products at Coinbase Greg Tusar told Fortune that he hopes the index will become the go-to benchmark for investors.
/jlne.ws/4fI2BZN
Global Carbon Emissions Rise, Pushing World Toward Dreaded Warming Threshold
Ethan M Steinberg - Bloomberg
Carbon dioxide emissions from fossil fuels inched higher in 2024 and are estimated to set a record, further jeopardizing the planet's prospect of meeting a key goal set by the 2015 Paris Agreement to limit global warming, according to an annual report that tracks emissions. Burning fossil fuels like coal, oil and natural gas caused CO2 releases to rise an estimated 0.8% to a record 37.4 billion metric tons in 2024, the Global Carbon Budget study found. Including emissions from changing land use, that total is expected to rise to 41.6 billion this year, pushing atmospheric CO2 levels 52% higher than they were before the industrial revolution.
/jlne.ws/3Z39kb1
Trump's Mass-Deportation Plan to Hurt Farming, Co-Op Chief Says; California farms could be especially hurt by fewer migrants; Landus CEO says farmers must be heard in new administration
Kim Chipman, Joe Mathieu, and Tarso Veloso - Bloomberg
President-Elect Donald Trump's threat of mass deportations risks hurting the domestic agriculture sector already struggling with labor shortages. That's according to Matt Carstens, chief executive officer of Iowa's biggest farm cooperative, who said Trump's plan should be approached carefully. Farming would be one of the biggest US sectors hit should the incoming administration move forward with kicking potentially millions of undocumented immigrants out of the country.
/jlne.ws/4fnAWxz
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine and Russia fight for advantage ahead of Donald Trump's return; Kyiv sends more medics to eastern frontline before Moscow's expected onslaught
Christopher Miller in Kyiv and Max Seddon in Riga - Financial Times
Ukraine's military is rushing medics to the frontline in anticipation of an intensified Russian onslaught as both sides fight for territorial advantage before Donald Trump returns to the White House. Military officials, soldiers and analysts see the next few months as a critical phase in the war, with Ukraine attempting to stabilise defences and strengthen its position in case it is forced to negotiate with Moscow by the incoming US president. Moscow has ramped up attacks in recent months and Ukraine's forces have been unable to hold the line in the east, where Russian troops are now advancing at a faster rate than at any point since 2022. Ukrainian officials have admitted that their defences are "crumbling" amid manpower shortages.
/jlne.ws/4erQBKT
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Trump to name former Arkansas Gov. Mike Huckabee as ambassador to Israel
Stephen Fowler - NPR
Former Arkansas Gov. Mike Huckabee will be nominated as the U.S. Ambassador to Israel, President-elect Trump said Tuesday. Huckabee is a longtime supporter of Israel and a critic of the Biden administration's handling of the Israel-Hamas war in Gaza. He has previously spoken out against efforts to negotiate a ceasefire deal and called unauthorized settlements in the occupied West Bank "communities."
/jlne.ws/3Cq4wDX
Families of American hostages captured by Hamas turn to Donald Trump for new hope
MJ Lee and Arlette Saenz - CNN
The families of US hostages captured by Hamas on October 7, 2023, remain in agony, waiting for any sign that their loved ones might finally come home to them. Now, more than a year into the Israel-Hamas conflict and on the heels of last week's US presidential election, some of those families are turning to one man with renewed hope: President-elect Donald Trump.
/jlne.ws/3Cunw4k
Middle East latest: US won't halt any weapons to Israel over Gaza humanitarian aid situation; Eight international aid groups say Israel has failed to meet U.S. demands to allow greater humanitarian access to the war-ravaged Gaza Strip
The Associated Press via ABC News
Catch up on the developing stories from around the globe making headlines.
Eight international aid groups said Tuesday that Israel has failed to meet U.S. demands for greater humanitarian access to the war-ravaged Gaza Strip, where hunger experts say the north may already be experiencing famine. However, the Biden administration said Tuesday it won't limit weapons transfers to Israel because the U.S. says its key ally has made good but limited progress in increasing the flow of humanitarian aid to Gaza.
/jlne.ws/4erZFzd
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Comment By Douglas Grant, Group CEO Of Manx Financial Group, On Introduction Of Private Stock Market, PISCES, Presenting A Threat To AIM
Mondovisione
The UK government is set to unveil plans for a groundbreaking private stock market tomorrow to revitalise the country's dwindling IPO pipeline. In her inaugural Mansion House speech, UK Chancellor Rachel Reeves will disclose proposals to legislate for a regulated stock exchange system named Pisces by next May. According to Treasury sources, this platform will allow investors to trade shares in private companies.
/jlne.ws/3O3WjIb
BME to bring together more than 40 companies with near 60 investors at the 26th edition of the Latibex Forum
BME-X
The 26th edition of the Latibex Forum will be held on 19 and 20 November. Once again this year, the Palacio de la Bolsa de Madrid will host an intense programme of public panel discussions on current issues and private meetings between listed companies and investors. The Latibex Forum, which is the benchmark investment meeting between Latin America and Europe, will bring together more than 40 Latin American and Spanish companies with interests in the region with near 60 investors. Of these, 35% are international. The business representation includes companies from Mexico, Brazil, Chile, Colombia, Peru and Spain. 240 meetings are scheduled.
/jlne.ws/3ACJotE
Support for SPAN 2 Framework Approximation Test Files Now Available - Effective November 22, 2024
CME Group
Consistent with this advisory, and pending all applicable regulatory reviews, CME is migrating equity products to the SPAN 2 framework. As part of this migration, CME has enhanced the SPAN 2 approximation SPAN risk array files to include risk data for equities in the SPAN 2 framework. The production go live date for the equities in the SPAN 2 approximation risk data is the end-of-day cycle on Friday, November 22, 2024. Please note this date does not impact the existing November 15, 2024 go live date for equities in the SPAN 2 framework.
/jlne.ws/3ABAGvG
Effective Dates for Spot Month Position Limits in the December 2024 Core Products
CME Group
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DTCC's FICC Enhances VaR Calculator Capabilities, as Firms Prepare for the U.S. Treasury Clearing Requirements; New Cross Margining and Repo calculator functionalities will enhance Users' understanding of risk management and margin requirements.
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the launch of enhancements to its interactive, public-facing Value at Risk (VaR) calculator adding cross-margining and repo transaction functionalities. These enhanced risk tools are intended to support firms as they prepare for the expansion of U.S. Treasury Clearing in 2025 and 2026. The calculator functionality, developed for the Fixed Income Clearing Corporation's (FICC) Government Securities Division (GSD), provides users with estimated calculations of potential cross-margining reductions at FICC as well as other enhancements.
/jlne.ws/4evYjUh
Commerzbank joins LCH ForexClear as clearing member
The move will allow Commerzbank to access to ForexClear's margin, liquidity and netting opportunities as well as enhanced operational efficiency.
Claudia Preece - The Trade
Commerzbank is the latest clearing member to join the London Stock Exchange Group's LCH ForexClear as a clearing member. Andrew Batchelor, head of ForexClear, LCH, said: "Over the past 18 months, financial institutions from Europe, Asia and the US have joined us and chosen to clear their FX trades with us, and we have seen record volumes across our products.
/jlne.ws/3YGF6cC
24 283 Suspension of Tin Brand RBT
LME
Please be advised that with immediate effect and until further notice, no further deliveries of tin brand RBT, produced by PT Refined Bangka, will be accepted for LME warranting under the tin contract.
/jlne.ws/3YLuTvx
24 282 Lifting of Suspension for Copper Grade A Brand CF TIEFENG
LME
Further to Notice 24/152 issued on 4 April 2024, please be advised that the suspension of Copper - Grade A brand CF-TIEFENG has been lifted with immediate effect.
/jlne.ws/48JTk17
24 281 Lifting of Suspension for Primary Aluminium Brand SEB
LME
Further to Notice 24/035 issued on 1 February 2024, please be advised that the suspension of Primary Aluminium brand, SEB has been lifted with immediate effect.
/jlne.ws/3CjG6Mb
Key Themes and Insights from Sibos 2024; Operational resilience, digitalisation and post-trade harmonisation were among some of the key talking points during Sibos in Beijing.
SIX
Financial market infrastructures (FMIs), i.e. Stock Exchanges, Central Securities Depositories (CSDs), and Central Counterparty Clearing Houses (CCPs) are all vital components which support the integrity and smooth running of financial markets. The ability for FMIs to operate in all sorts of Black Swan scenarios and provide a seamless service throughout is non-negotiable.
/jlne.ws/48Vadpx
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Fintech Klarna files for IPO in US; Swedish buy now, pay later pioneer submits documents for widely anticipated flotation
Richard Milne in Oslo and Akila Quinio in London - Financial Times
Klarna has begun its long-anticipated stock market flotation after the Swedish buy now, pay later pioneer said it had filed initial public offering documents in the US. The fintech said on Wednesday that it had "confidentially submitted" a draft registration statement to the US Securities and Exchange Commission. The initial public offering, which could value Klarna between $15bn and $20bn, would take place after the SEC review and the timing would be subject to market conditions, the company added. Klarna said the price range and number of shares to be offered in the IPO were still to be determined.
/jlne.ws/4hISRQP
Broadridge Appoints Alix Jules as AI Transformation Leader
Broadridge via Fintech Finance
Global Fintech leader Broadridge Financial Solutions, Inc., announced the appointment of Alix Jules as AI Business Transformation Leader at Broadridge, effective November 11, 2024. Jules will be based in New York City and will report into Roger Burkhardt, Head of AI for Broadridge. "We are excited to have Alix join Broadridge where we are dedicated to leveraging AI to better serve our clients, empower our staff and drive efficiency in operations," said Roger Burkhardt, Head of AI for Broadridge. "Alix's background in digital and AI driven transformations brings invaluable "hands on" expertise to our business and operations teams as they transform the ways in which we service our clients and meet the needs of the financial services industry. He brings deep and practical understanding of both the human and technical elements of business transformations."
/jlne.ws/3O6p9Yl
Arcesium Unveils New Regulatory Reporting Solution to Help Investment Managers Achieve Airtight Compliance with Increased Efficiency and Control; Arcesium adds automated Regulatory Reporting tool to its Opterra operational platform to help investment managers meet evolving regulations while drastically minimizing cost, errors and time
Arcesium
Arcesium, a leading provider of investment lifecycle and data management technology for the global investment industry, today launches its automated Regulatory Reporting solution that will significantly reduce the resources required to manage regulatory compliance. The tool allows investment managers to efficiently remain compliant with evolving global reporting frameworks, using a trusted, single source of data pulled from within their already existing operating model. The new solution launches as an extension to Arcesium's investment lifecycle management platform, Opterra, and will accurately streamline disclosure processes by automating reports using a firm's consolidated data on trades, positions, P&Ls and accounts.
/jlne.ws/3Z1zdIi
Singapore FinTech Festival 2024 Attracts 65,000 Participants
Mondovisione
The ninth edition of the Singapore FinTech Festival (SFF) concluded successfully on 8 November with 65,000 participants from 134 countries and regions in attendance. Key highlights of SFF 2024 include: The invite-only Insights Forum brought together more than 2,300 policymakers, regulators, investors, and industry leaders for in-depth discussions across 40 roundtables. Topics ranged from the future of financial infrastructure to pathways for achieving global net-zero goals. More than 3,400 government and regulatory attendees across 665 central banks, regulatory institutions and government organisations participated in the Regulation Zone. Key discussion areas included Artificial Intelligence (AI) solutions, quantum research and finance, cross-border data flow, and digital asset growth.
/jlne.ws/3CmHg9I
AI? Patience young grasshopper; As the adoption of AI surges across capital markets, sentiment is on the up despite some trepidation, but what should be considered before everyone dives headfirst into integration? Claudia Preece weighs risk versus reward and takes stock of where the newest AI capabilities could throw up some curveballs when it comes to trading.
Claudia Preece - The Trade
Artificial intelligence (AI) and innovation have become synonymous in recent times, with the promise of more efficiency than ever before without breaking the bank clearly proving too good to resist. But what does the persistent evolution of AI mean for capital markets specifically? In a world characterised by its complexity and high barriers to entry, is the promise of conclusive simplicity perhaps just too good to be true?
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OpenAI, Google and Anthropic Are Struggling to Build More Advanced AI; Three of the leading artificial intelligence companies are seeing diminishing returns from their costly efforts to develop newer models.
Rachel Metz, Shirin Ghaffary, Dina Bass, and Julia Love - Bloomberg
OpenAI was on the cusp of a milestone. The startup finished an initial round of training in September for a massive new artificial intelligence model that it hoped would significantly surpass prior versions of the technology behind ChatGPT and move closer to its goal of powerful AI that outperforms humans. But the model, known internally as Orion, did not hit the company's desired performance, according to two people familiar with the matter, who spoke on condition of anonymity to discuss company matters. As of late summer, for example, Orion fell short when trying to answer coding questions that it hadn't been trained on, the people said.
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OpenAI co-founder Greg Brockman returns to ChatGPT maker
Reuters
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LocalStack Raises $25M Series A to Give Developers Back Control of Their Cloud Development Experience; Developer-First Platform Transforms Cloud Development by Moving AWS Development from Cloud to Laptop; Already Seeing 8M+ Weekly Sessions
LocalStack
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Quincy Data Announces Sub-Nanosecond Time Synchronization Service
Mondovisione
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Super Micro Delays Another Filing After Auditor's Resignation; Troubled server maker says it needs more time to find auditor; Firm has seen more than $50 billion in market value wiped out
Lynn Doan - Bloomberg
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| Cybersecurity | | Top stories for cybersecurity | Top 10 Largest Cybersecurity Companies
Kristian McCann - Cyber Magazine
Coverage is a key selling point, especially to multinational enterprise clients
Often overlooked as a metric, but the coverage a company can offer is useful to see how well companies can offer protection to multinational customers. When judging a company, you might look at employee count, revenue, or market cap to place it among its peers. However, as cybersecurity professionals will know, sometimes it's not about how impressive a singular metric is, but about the breadth of coverage it offers.
/jlne.ws/3ULvADZ
China's Hacker Army Outshines America
Micah McCartney and Didi Kirsten Tatlow - Newsweek
Hacking competitions in China have surged over recent years, supported by strong government backing and rising public interest, raising alarm in the U.S., where officials are warning that the widening cyber skills gap is placing America at a strategic disadvantage and posing national security risks. China has made great strides since President Xi Jinping's call for the nation to become a "cyber powerhouse" a decade ago. University programs in cybersecurity have been standardized, a National Cybersecurity Talent and Innovation Base capable of certifying 70,000 cybersecurity experts per year was established, and hacking competitions-many touting their alignment with Xi's "powerhouse" ambition-have proliferated.
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Banks are reporting a ten-fold surge in digital scams, cybersecurity firm BioCatch says
Hugh Son - CNBC
U.S. and Canadian banks reported a ten-fold surge in digital scams this year as criminals flock to techniques that rely on duping customers into sending them money, according to cybersecurity firm BioCatch. The sharp rise in reported scams from the first three quarters of 2023 comes as banks have put in place more controls to prevent account takeovers and other forms of fraud, according to BioCatch Director of Global Fraud Intelligence Tom Peacock.
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto ETF Provider Bitwise Buys Ether Staking Service Attestant; Bitwise will manage $10 billion in assets after the deal; Terms of the equity and cash transaction weren't disclosed
Olga Kharif - Bloomberg
Crypto exchange-traded fund issuer Bitwise Asset Management Inc. has acquired Attestant, an Ethereum staking service in a bid to expand beyond its core businesses with the digital-asset sector seen by advocates as being on the verge of transformation. Terms of the cash and equity transaction weren't disclosed. The London-based firm handles about $3.7 billion in assets for institutional investors outside the US who wish to earn rewards by using their Ether to help validate transactions on the Ethereum blockchain. Attestant's 11 employees will join Bitwise.
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'Bitcoin Jesus' Fights IRS Tax Evasion Case From Spanish Island; Roger Ver charged with underreporting value of token holdings; Longtime crypto investor renounced US citizenship in 2014
David Voreacos and Olga Kharif - Bloomberg
To his followers, Roger Ver is known as Bitcoin Jesus, a charismatic advocate of the cryptocurrency that is once again captivating investors with record-breaking gains. But to the Internal Revenue Service, Ver symbolizes a new target in the digital age: a crypto holder suspected of failing to pay taxes after selling tokens. US prosecutors charged Ver this year with evading more than $48 million in taxes for selling $240 million in tokens. It's the most prominent case dealing solely with tax fraud and digital-asset sales, and marks a break from the tradition of prosecutors tacking tax charges onto crypto cases for crimes like money laundering, ransomware attacks and investor scams.
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As crypto fortunes swell, Robinhood announces tie-up with charity platform Daffy
Catherine McGrath - Fortune
Crypto investors have seen their holdings soar this week as a result of post-election euphoria that has Bitcoin fast approaching $100,000. Now, for those looking to spread their newfound wealth around, Robinhood has partnered with Daffy to allow users to donate almost any financial asset to over 1.5 million charities, making it easier to give money to a good cause.
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Crypto Venture Funding Dipped in Quarter Before Trump's Victory; VC investment dropped 31% to $1.7 billion in the third quarter; Infrastructure startups continued to draw the focus of backers
Muyao Shen - Bloomberg
Venture capital investment in the cryptocurrency sector fell significantly in the third quarter before President-elect Donald Trump's electoral surge revived industry sentiment. Crypto startups drew in $1.7 billion in the three months ended Sept. 30, a 31.3% decline from the previous quarter, PitchBook data show. The number of deals struck dropped 25.3% to 392.
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| Politics | | An overview of politics as it relates to the financial markets | Elon Musk Has a New Project to Run: Trump's Government; After plowing at least $132 million into the president-elect's campaign, the richest man in the world is about to treat the US government as if it were a money-losing social network.
Max Chafkin and Dana Hull - Bloomberg
On the afternoon of Election Day, Elon Musk stopped by his polling place in South Texas, then headed to one of his private planes, bound for what he hoped would be a victory party for Donald Trump at the Mar-a-Lago Club in Palm Beach, Florida. On the way, Musk held an impromptu political rally. He posted the link to a livestream on his social network, X. "There's only a few hours left," Musk said, as the engine hummed and 100,000 or so people listened in. "So just make sure everyone is hounding friends and family to vote, vote, vote."
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Rest of World's Markets Broken By Trump's America-First Plan; A gauge of stocks excluding the US is at a three-month low; Dollar is at a two-year high, pressuring other currencies
John Cheng and Matthew Burgess - Bloomberg
Donald Trump's election victory has catapulted US stocks to fresh records and pushed the dollar to a two-year high. It's anything but good news for the rest of the world. Equities excluding the US are tumbling, with an MSCI gauge at its lowest in three months. An index of developing-market currencies has lost more than 1% following the US election, coming close to erasing this year's gains. European stocks and the euro have flopped. The stark divide between US and non-US assets has become more pronounced as Trump's cabinet starts to take shape, with loyalists ready to carry out his "America First" proposals named for key posts. That has confirmed the worst of investors' fears: that the push for higher tariffs, particularly on China, will gain momentum, alongside a host of potentially disruptive policies that can drive inflation higher and bind the hands of central banks.
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Q&A: How will a Trump presidency transform global trade and financial markets? Ask questions to FT journalists about the economic direction of travel under the incoming president
FT reporters - Financial Times
President-elect Donald Trump won a resounding victory last week on a protectionist economic platform, vowing to impose a 60 per cent tariff on all imports from China and levies of up to 20 per cent on goods from the rest of the world. Various economists have warned that the economic direction of travel under Trump will imperil global prosperity and could exacerbate inflation. But his win has excited Wall Street, with stocks rallying on the back of a so-called "Trump trade". Bond investors have responded much more cautiously.
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Crypto Industry Lobbies Trump and His Allies to Capitalize on Election Wins; As Bitcoin soars to record highs, cryptocurrency executives are maneuvering to influence Donald J. Trump's transition and secure their policy goals.
David Yaffe-BellanyTheodore Schleifer and Erin Griffith - The New York Times
A cryptocurrency enthusiast as chair of the Securities and Exchange Commission. A presidential committee stacked with industry loyalists. And legislation to let crypto companies operate freely in the United States. After years in the political wilderness, crypto executives are scrambling to execute a policy wish list that could fundamentally transform the industry's standing in the United States. They are intensively lobbying President-elect Donald J. Trump and his allies, seeking to shape decisions about key personnel in the new administration and end a regulatory crackdown on crypto companies.
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Trump and his mandate for retribution; The president-elect has promised vengeance against perceived enemies
Edward Luce - Financial Times (opinion)
JD Vance, now America's vice-president elect, last month said that the second-most important figure in Donald Trump's administration would be his attorney-general. Nobody, least of all the incoming number two, ever said that about a US presidency. Typically, the shortlists for secretary of state, defence secretary, Treasury secretary or CIA director dominate the speculation. Yet Vance was straight talking. Trump's bitterest first term gripe was that the Department of Justice did not bend to his will. We can assume that whoever Trump picks as attorney-general will owe him personal loyalty. There are few theoretical limits on what Trump can do to carry out his vows of revenge. The Supreme Court made sure of that in the summer when it gave the US president near blanket immunity.
/jlne.ws/40EsMMG
How Russia's energy minister plotted merger of country's oil majors; Pitch by Sergei Tsivilev, a relative of Vladimir Putin, aimed to tighten oversight of Rosneft and nationalise Lukoil
Anastasia Stognei in Berlin, Max Seddon in Riga and Tom Wilson in London - Financial Times
Russia's energy minister has attempted to combine the country's oil majors in a sign of the power struggle at play over the Kremlin's key wartime revenue source, according to four senior Russian energy industry figures. The pitch by Sergei Tsivilev, a relative of president Vladimir Putin who was appointed to the role in May, involved nationalising Lukoil and tightening control over state-run Rosneft and Gazprom Neft, a unit of gas monopoly Gazprom, according to the people. However Putin did not give Tsivilev the greenlight to explore the idea, which is opposed by company executives, the people said.
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Fight Over Europe's Biggest Lithium Mine Gets Geopolitical; Rio Tinto's planned $2.7 billion project in Serbia has triggered protests, but the country's president sees it as critical to strengthening ties with Europe.
Misha Savic and Andrea Dudik - Bloomberg
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| Regulation & Enforcement | | Stories about regulation and the law. | Trump's 'Epic' Deregulation Must Preserve Financial Stability; The president-elect and Elon Musk want to blow up the federal rule book. Good luck, but please exercise some caution.
The Editorial Board - Bloomberg
Given that he was just elected, Donald Trump's plans for financial regulation are, like so much else, a mystery. Yet his campaign's disdain for the administrative state - and the public's growing exasperation with red tape - suggests the country is in for a period of bureaucratic humility. Here's hoping the financial system doesn't become vulnerable as a result.
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FinCEN, Law Enforcement, and Financial Industry Representatives Meet to Discuss Collaborative Efforts to Combat Illicit Finance Related to Fentanyl Trafficking
FinCEN
Today, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), in partnership with Treasury's Internal Revenue Service - Criminal Investigation (CI), held the eighth event of its Promoting Regional Outreach to Educate Communities on the Threat of Fentanyl (PROTECT) series of the FinCEN Exchange program. The event brought together public and private sector representatives in the area surrounding El Paso, Texas to discuss ways to deepen collaboration against the illicit trafficking of fentanyl into the United States.
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Federal Reserve Board issues enforcement actions with former institution-affiliated parties of Nano Financial Holdings, Inc. and Nano Banc
Federal Reserve Board
The Federal Reserve Board on Tuesday announced that it had prohibited Anthony R. Gressak III from future participation in the banking industry and fined him $75,000. Gressak is a former director and former interim chief executive officer of Nano Financial Holdings, Inc. and Nano Banc. In his former role, Gressak violated a prior written agreement between the firm and the Federal Reserve. Gressak also fraudulently obtained loans and grants administered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and violated other laws and banking regulations.
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CFTC Awards $4M to Two Whistleblowers
CFTC
The Commodity Futures Trading Commission today announced it is awarding nearly $4 million to two whistleblowers who provided information leading to the successful enforcement of a covered action. Information from both whistleblowers formed the basis for the CFTC's investigations underlying the covered action. One whistleblower provided information earlier in time and the other reported that the violative practices had continued. The initial whistleblower was awarded a higher award amount based on the timeliness of the reporting, among other factors.
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Funding FINRA's Mission
FINRA
Eric Noll, Scott A. Curtis and Robert W. Cook - FINRA
Dear Member Firms: As a not-for-profit membership organization, we are committed to transparency and engagement with our members regarding our finances. Accordingly, we want to update you on FINRA's plans over the next several years for funding our mission of protecting investors and promoting market integrity in a manner that facilitates vibrant capital markets.
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Supporting confidence in our credit system through good consumer outcomes
ASIC
Address by ASIC Deputy Chair Sarah Court at the Australian Financial Security Authority Summit, 13 November 2024.
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FCA to consult on extending the time motor finance firms have to handle commission complaints
FCA
The decision to consult follows the Court of Appeal's judgment in Hopcraft v Close Brothers Ltd, Johnson v Firstrand Bank Ltd, and Wrench v Firstrand Bank Ltd. The FCA will consult on extending the time firms have to respond to consumer complaints about motor finance where a non-discretionary commission was involved, and for consumers to refer them to the Financial Ombudsman Service. The proposals are expected to be published within 2 weeks and, if taken forward, would mean the complaint extension is in place by mid-December 2024. The FCA's decision to consult follows the Court of Appeal's 25 October judgment in Hopcraft v Close Brothers Ltd, Johnson v Firstrand Bank Ltd, and Wrench v Firstrand Bank Ltd.
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Exchange of Letters on Cooperation in the area of banking resolution with the Korea Deposit Insurance Corporation (KDIC)
FSA
On November 12, 2024, the Financial Services Agency and the Korea Deposit Insurance Corporation exchanged letters on cooperation in the area of banking resolution to enhance communication and cooperation in this area through the sharing of information between the two authorities.
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IOSCO Publishes Report on Transition Plans Disclosures
IOSCO
Report explores how the related disclosures can support investor protection and market integrity objectives and sets out future considerations for key stakeholders.
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Singapore FinTech Festival 2024 Attracts 65,000 Participants
MAS
The ninth edition of the Singapore FinTech Festival (SFF) concluded successfully on 8 November with 65,000 participants from 134 countries and regions in attendance.
/jlne.ws/3ULoGi3
Oral reply to Parliamentary Question on complaints against online finfluencers
MAS
Question: To ask the Prime Minister and Minister for Finance (a) in the past five years, whether MAS has received complaints against online "finfluencers" who discuss financial content; (b) if so, how many; and (c) whether the Ministry will review the Financial Advisers Act 2001 to regulate the "finfluencer" sector.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Donald Trump's mixed signals for gas market; Incoming administration's policies might eventually lead to decrease in US LNG exports to EU
Anne-Sophie Corbeau - Financial Times (opinion)
The writer is global research scholar at the Center on Global Energy Policy at Columbia University and former head of gas analysis at BP.
As Donald Trump prepares to return to the White House, many aspects of the global gas market have changed dramatically since his first term. And the policies of his new administration will bring further change. Just how much depends on the push and pull of a complex interplay of forces in this critical market. The US became the largest LNG exporter in 2023 and is expected to remain dominant. By 2030, the US will represent 24 per cent of the global LNG export capacity based on existing capacity and more under construction.
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DV Trading hires Trafigura, Aramco traders in energy expansion; Chicago-based firm is bulking up staff in DV Energy division; Hiring spree comes as other firms pull back as volatility ebbs
Devika Krishna Kumar, Bloomberg
DV Trading hired several fuel and natural gas traders in recent months as it expands its proprietary energy-trading business, even as other firms slow hiring in the space amid ebbing volatility. Bryndon Kline, previously with Trafigura, joined as a fuel trader, and Nate Costello, most recently at Aramco Trading Co., was hired as a refined-products strategist, Chicago-based DV Trading said. The firm also added Ryan Sharma as a natural gas trader last month, while RJ Hayes, who was a senior gas trader at TC Energy Corp., joined earlier this year. Blake Hill, a natural gas trader, was hired from Engelhart Commodities Trading Partners.
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Templeton's Call for 5% Treasury Yield Matches JPMorgan, T. Rowe; Yields may climb above 5% depending on the deficit: Desai; Traders have been boosting Treasury short positions, data show
Ruth Carson and Mia Glass - Bloomberg
Treasury 10-year yields may climb to 5% or higher as the US government boosts its debt supply to fund a multi-trillion dollar deficit, according to Franklin Templeton. "Getting to 4.5% to 5% on the 10-year, that's reasonable," Sonal Desai, chief investment officer of Franklin Templeton Fixed Income, said in an interview in Tokyo. Should investors see the US deficit "blowing out enormously," benchmark US yields could then go "above 5%," she said. Desai joins JPMorgan Asset Management and T. Rowe Price in warning of higher Treasury yields as investors start to price in what a second Donald Trump presidency may mean for debt markets.
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Copper Smelters Battered by Tight Supply and Weakening Demand; Processors are finding themselves in weak bargaining positions against both miners and buyers at an industry gathering in China.
Mark Burton - Bloomberg
Welcome to our guide to the energy and commodities markets powering the global economy. Today, metals reporter Mark Burton writes from Shanghai, where copper processors find themselves in a weak bargaining position with both miners and end users. The world's top copper producers are in China this week to hammer out annual supply deals. Tensions are running high as smelters are being hit by a tighter supply of mined ores and deteriorating demand for refined metal.
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Mean reversion: has AI abolished gravity for share prices? Despite the Magnificent Seven, US stocks are predicted to be riding for a fall
Jonathan Guthrie - Financial Times (opinion)
Here is a good phrase for suggesting a stock price has risen unsustainably: "Up like a rocket, down like a stick." It works nicely because gravity is an analogy commonly used in investment. Hence, all that "soaring", "climbing", "falling" and "plunging" which market reporters attribute to shares. But "gravity" is just too widely understood to sound technocratic. So financial natives talk about "mean reversion" instead.
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India's Nifty Enters Corrections Territory as Foreigners Sell; Selloff pushes benchmark index toward 200-day moving average; Oversold conditions might trigger a limited rebound: Religare
Alex Gabriel Simon and Chiranjivi Chakraborty - Bloomberg
India's benchmark NSE Nifty 50 Index entered a so-called correction amid persistent selling by foreign investors and a weak results season that's led to earnings downgrades. The gauge fell 1.4% on the day to 23,559 on Wednesday, extending losses from its Sept. 26 peak to over 10%. Global funds have sold local equities for 14 straight sessions through Monday.
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Riskiest Stocks at Frothy Levels Show Trump-Trade Vulnerability
Esha Dey and Jan-Patrick Barnert - Bloomberg
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Tesla's Meme-Like Stock Surge Leaves Wall Street Feeling Wary
Esha Dey - Bloomberg
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Global Carbon Emissions Rise, Pushing World Toward Dreaded Warming Threshold; CO2 emissions increased an estimated 0.8% to a record 37.4 billion metric tons in 2024.
Ethan M Steinberg - Bloomberg
Carbon dioxide emissions from fossil fuels inched higher in 2024 and are estimated to set a record, further jeopardizing the planet's prospect of meeting a key goal set by the 2015 Paris Agreement to limit global warming, according to an annual report that tracks emissions.
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'We may have less to offer': US negotiators confront diminished standing at COP29; The Biden administration tried to project confidence in the early days of the U.N. climate conference, but all signs point to a reduced U.S. role.
Jake Bittle - Grist
As dozens of heads of state arrived in Azerbaijan for the annual United Nations climate talks this week, one absent world leader's name was on everyone's lips. At press conference after press conference, questions arose about the election of Donald Trump. The U.S. president-elect has threatened to pull the United States out of the landmark Paris climate agreement - for a second time - and slow down the country's transition to renewable energy.
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Lee Zeldin, Trump's EPA Pick, Brings a Moderate Face to a Radical Game Plan; Despite his past pro-environment votes-especially to protect Long Island's coast-the former New York congressman is expected to be on board with Trump's climate policy rollbacks.
Marianne Lavelle - Inside Climate News
By tapping former New York Rep. Lee Zeldin to head the Environmental Protection Agency, President-elect Donald Trump opted to put his planned radical rollback of climate policy in the hands of a staunch ally who is skilled at projecting an image of a moderate conservationist.
/jlne.ws/3AGvcQo
Big oil firms knew of dire effects of fossil fuels as early as 1950s, memos show; Newly unearthed documents contain warning from head of Air Pollution Foundation, founded in 1953 by oil interests
Dharna Noor - The Guardian
Major oil companies, including Shell and precursors to energy giants Chevron, ExxonMobil and BP, were alerted about the planet-warming effects of fossil fuels as early as 1954, newly unearthed documents show. The warning, from the head of an industry-created group known as the Air Pollution Foundation, was revealed by Climate Investigations Center and published Tuesday by the climate website DeSmog. It represents what may be the earliest instance of big oil being informed of the potentially dire consequences of its products.
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'Fossil Fuels Are Still Winning': Global Emissions Head for a Record; Countries promised to move away from coal, oil and natural gas at last year's climate summit. New research shows they're burning more than ever before.
Brad Plumer - The New York Times
One year after world leaders made a splashy promise to shift away from fossil fuels, countries are burning more oil, natural gas and coal than ever before, researchers said this week. Global carbon dioxide emissions from fossil fuels are on track to reach a record 37.4 billion metric tons in 2024, a 0.8 percent increase over 2023 levels, according to new data from the Global Carbon Project. It's a trend that puts countries farther from their goal of stopping global warming.
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Exxon Chief to Trump: Don't Withdraw From Paris Climate Deal; Darren Woods was one of only a few Western oil executives attending a global climate conference in Baku, Azerbaijan.
Rebecca F. Elliott - The New York Times
Darren Woods, the chief executive of Exxon Mobil, cautioned President-elect Donald J. Trump on Tuesday against withdrawing from the Paris agreement to curb climate-warming emissions, saying Mr. Trump risked leaving a void at the negotiating table. Mr. Woods, speaking at an annual U.N. climate summit in Baku, Azerbaijan, described climate negotiations as opportunities for Mr. Trump to pursue common-sense policymaking.
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US oil and gas firms to face federal fee for methane emissions in new EPA rule; Environmental Protection Agency rule seeks to curb 'super pollutant' more potent than carbon dioxide in short term
Associated Press via The Guardian
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Scientific Portfolio Launches New Platform Empowering Investors To Independently Analyse The ESG Characteristics Of Equity Portfolios And Their Risk Consequences
Mondovisione
/jlne.ws/3YGvWwK
Keir Starmer touts UK climate leadership but resists call for more public finance; UK's prime minister is one of only two G7 leaders at UN COP29
Attracta Mooney and Jim Pickard - Financial Times
/jlne.ws/3YKUGny
China urges 'constructive dialogue' on climate change under Donald Trump; Envoy tells COP29 summit in Baku that it is 'firmly' committed to controlling methane and other super-pollutants
Attracta Mooney - Financial Times
/jlne.ws/4foBh2Y
North Dakota Wants Your Carbon, But Not Your Climate Science; A $9 billion plan to entomb CO2 emissions has a distinctly non-environmental attraction for the people of the Great Plains: It could allow the region to keep pumping oil and burning coal.
Adam Willis - Bloomberg
/jlne.ws/413tROr
Microsoft and Royal Bank of Canada Bet on New Approach to Carbon Cleanup; The duo are buying carbon removal from Deep Sky, a company convening multiple technologies at the same site in a bid to bring down costs.
Michelle Ma - Bloomberg
/jlne.ws/48Ma6g2
No Water by Year-End for This Zimbabwean City of 700,000 People; Bulawayo's mayor warns that the crisis may spark an exodus of residents.
Ray Ndlovu - Bloomberg
/jlne.ws/4evK3e2
RWE scales back EUR55bn renewables bet after Trump win; German power producer was already under pressure from shareholders to lift returns
Laura Pitel - Financial Times
/jlne.ws/40LFLfn
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | FSB - The Importance Of Resolution Planning And Loss-Absorbing Capacity For Banks Systemic In Failure: Public Statement
Mondovisione
Ensuring bank resolvability remains the most efficient way to tackle the problem of the implicit 'too big to fail' subsidy for big banks and to avoid a bail-out by the taxpayer. The lessons from the 2023 bank failures reinforced the need to maintain momentum and advance the work on bank resolvability and to avoid complacency. That experience underscored that any financial institution that could be systemically significant or critical if it fails should be subject to a resolution regime that has the attributes set out in the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes). The FSB's work on bank resolution until now has primarily focused on global systemically important banks (G-SIBs). Significant progress has been made to enhance their resolvability since the adoption of the FSB's Key Attributes. However, existing FSB guidance on resolution planning and resolution execution may also be relevant for other banks that may be systemically significant or critical if they fail ("banks systemic in failure").
/jlne.ws/40K7Jsb
China CSI A500 index sparks fresh interest from global managers; Neuberger Berman, BlackRock and Manulife have submitted applications for 'enhanced' CSI A500 index funds
Roxanne Liu, Ignites Asia - Financial Times
A shift to passive funds in China offers a new opportunity for global firms to stand out among established local players in the rush to launch products tracking the recently created CSI A500 index. But there are still question marks over whether global firms in China have sufficient onshore resources and if their experience offshore will help their new enhanced funds, which combine active management elements with index tracking, to outperform and attract assets.
/jlne.ws/40KaPMP
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Citadel Warns Recruiters: Don't Pitch Fake Jobs; The US investment firm's reminder follows a Bloomberg News investigation into allegations that Odin Partners misled traders at some of the world's biggest banks, which the headhunter has denied.
William Shaw and Nishant Kumar - Bloomberg
Citadel has warned external recruiters not to pitch non-existent jobs following allegations that a leading headhunter misled traders at some of the world's biggest banks into sharing confidential information. Ken Griffin's investment firm has in recent weeks emailed recruiters reminding them not to divulge confidential information about Citadel, or to solicit such data from its staff, according to people familiar with the matter, who asked not to be named because of the sensitivity around the subject.
/jlne.ws/3AtXwFD
Recruiters urge candidates to use AI to apply for jobs; It is becoming acceptable to use the technology to draft letters and CVs - but not to answer assessments
Bethan Staton - Financial Times
Top recruiters are urging jobseekers to use artificial intelligence tools to apply for roles, indicating a growing acceptance of the new technology among employers. Several big international recruitment companies have started offering AI tools to candidates and are suggesting that using them to write CVs, draft cover letters and research job openings will help a wider range of candidates show their skills.
/jlne.ws/4fMQtqb
Meet the specialists digitising companies' legal teams; Five legal operations professionals stand out for their efforts to harness AI and other emerging tech tools
Nick Huber - Financial Times
The legal operations specialists who use their technological knowhow to support companies' in-house lawyers are the focus of this last instalment of the FT's monthly Accelerating Business series for 2024. The series examines the way lawyers, managers and legal tech providers use the latest resources to keep pace with business needs: this time we highlight five legal operations professionals. They stand out for their efforts to make full use of technology, especially artificial intelligence, and for broadening the role and influence of this area of in-house legal teams' work. The five were selected by FT research partner RSGI.
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Financial education for employees is good business
Ray Martinez and Ellen Patterson - Fortune (partner commentary)
This commentary is from Everfi, a partner of Fortune Impact Initiative. Ellen Patterson is president and general manager, and Ray Martinez is president and co-founder.
Whether it's learning about needs vs. wants in elementary school, or mastering more complex topics like investing, credit, and student loans in high school, early financial education is critical. Today, 26 states mandate financial education as a high school graduation requirement, and that number has more than doubled in the last decade.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | 8 ways to promote end-of-year wellness
Vanderbilt University
The holidays can add a layer of angst to the end of the year, but there are small steps you can take to protect yourself from rising stress levels. Whether you're traveling or celebrating the holidays at home, spending time with loved ones or seeking solitude, these tips can help you cultivate peace of mind throughout the winter festivities.
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It's Burning Man meets London's chicest members club: the wellness retreat which has become a favourite for the millennial glitterati; High society wellness retreats are all the rage but the best place to find peace and a sense of rejuvenation in London may be a little unexpected...
Dora Davies-Evitt - Tatler
I have been on the dance floor of Camden's KOKO many times, usually swaying to hard house with friends, cocktail in hand, hair swishing across my shoulders as we groove to Dan Shake mixes. But today is a little different. It's 3pm and I'm sitting on the floor of its 1,410 capacity dance floor. To my left a man lies on his back, his arms up into the air, panting in ecstasy. To my right, propped upright on several cushions, a woman in a Chanel shawl does the same. On the stage is Anthony Abbagnano, an expert in breath work, who is leading a class for connoisseurs of the practice and... me.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Abu Dhabi's $1 Trillion Fund Rejigs Strategy to Speed Up Deals; ADIA is now deploying cash faster in areas like private credit; It's also tapping in-house team for data-driven investing
Nicolas Parasie and Ben Bartenstein - Bloomberg
Abu Dhabi's $1 trillion wealth fund is embracing an increasingly scientific approach to investing, leaning more on its own quant team to speed up decision-making as it seeks to bolster returns. Abu Dhabi Investment Authority - ADIA - is using a 125-person division of data scientists to guide in-house investing, officials at the fund said in rare public comments to Bloomberg News. As part of the broad changes, it's also putting money more rapidly in private credit and has continued to ramp up allocations to private equity.
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China sets yuan reference rate to 14-month low as Trump win piles on the pressure; Yuan's midpoint rate falls to 14-month low as Trump's election throws most currencies other than the US dollar into uncharted waters
Ji Siqi - South China Morning Post
Beijing slashed the daily reference rate for its currency to its lowest level in 14 months, as external challenges - including a second term for Donald Trump in the White House - demand a balance between preventing exchange rate overshooting and keeping economic growth stable.
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